[Congressional Record Volume 167, Number 54 (Tuesday, March 23, 2021)]
[Extensions of Remarks]
[Page E291]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE KEEPING OUR MANUFACTURERS FROM BEING UNFAIRLY TAXED 
                WHILE CHAMPIONING HEALTH ACT (KOMBUCHA)

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                          HON. EARL BLUMENAUER

                               of oregon

                    in the house of representatives

                        Tuesday, March 23, 2021

  Mr. BLUMENAUER. Madam Speaker, today I introduced the Keeping Our 
Manufacturers from being Unfairly taxed while Championing Health Act 
(KOMBUCHA). This legislation would amend the Internal Revenue Code of 
1986 to properly tax kombucha, a fermented tea, naturally rich in 
probiotics and healthy acids, that can contain trace amounts of 
alcohol.
  Last month, on February 21, we commemorated World Kombucha Day and 
acknowledged the many contributions of kombucha brewers in my home 
State of Oregon, across the United States, and around the world. With 
the introduction of KOMBUCHA, the United States Congress now can extend 
that acknowledgement to legislative action by providing the industry 
with much-needed relief.
  Under the Internal Revenue Code, kombucha beverages with more than 
0.5 percent alcohol-by-volume are subject to excise taxes intended for 
beer. As a result of the fermentation process that is necessary to 
produce kombucha, some final products may contain more than 0.5 percent 
alcohol-by-volume, subjecting the industry to onerous excise taxes. But 
kombucha drinkers do not choose the product because of its alcohol 
content, they choose it as a healthy beverage option.
  My legislation would increase the alcohol-by-volume limit for 
kombucha to 1.25 percent, properly categorizing the product and 
allowing the kombucha industry to continue its growth. I look forward 
to working with my colleagues in the House and Senator Wyden in the 
Senate to provide this relief as soon as possible.

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